Unions, EFCA and Company Performance – Part 2

One fundamental issue with anniversary or focal performance reviews is how often the frequency of behaviors are measured. For unions, the frequency of measurement should naturally go way up, but for the wrong reasons. These measurements will tend to reflect whatever negative behavior occurred. There is less incentive for the manager to reward good behavior because he/she can’t – that particular employee gets lumped into a group where discretionary effort is not rewarded properly. So how do companies improve performance in a union environment without a proper reward system?

Here are 3 techniques that managers in union environments can utilize to improve performance in their work group:

1. Aligned Goals
2. Grandma’s Law
3. Reward Point System

Aligned goals are one way to unite unionized workgroups. Missions of both the union and the employees should be the same. These goals elements should be the primary leverage points in an employment contract. Always ask how union demands align with the goals and the core values of the company. If they don’t, the demand is a non-sequitor. Aligned goals will make the employee feel their activities are part of the overall strategy. They also erase the divide between the competing interest of management and unions.

Managers can use techniques like Grandma’s Law to influence behavior. Watch what activities your employees do when given a choice. Make those activities contingent upon the completion of tasks that are necessary for their position. Aubrey Daniels has some great examples of this in his book on performance management. You will find that production will go way up when an employee knows they have to complete Task A in order to move on to the more enjoyable Task B.

Utilize a point system versus monetary incentives – some would argue that point systems do way more to shape behavior than any other reinforcer. Money tends to be a reward for something but generally isn’t a reinforcer of behavior. Earning points for many people is a badge of honor. Look no further than an airline point system – anyone that has flown over a million miles on American has bragged about it. There are several companies that offer merchandise and experiences based on a point system – it is also easy to create your own but be sure you have the individual in mind when doing so.

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  1. #1 by Samuel Donovan on April 2nd, 2009 - 7:50 am

    I think that the majority of executives(i.e.; CEO/CFO/COO) would NOT be in favor of unions. If you look at the history of unions, they traditionally were born out of an adversarial relationship between management/ownership and the working stiff. In the early industrial age, the unions clearly served a needed purpose – to stop the abuse of the workers by the business owners/managers. Over time, I believe the role of the Union has become outdated and has been supplanted by the many employee labor laws which have been put in place over the years to protect the workers’ rights against their employers.

    I am strongly opposed to the EFCA legislation which is being proposed. The arguments in support of this legislation from the AFL-CIO/Organized labor are self-serving and not supportable or rationale. Let’s look at each one…
    -“EFCA will actually help businesses by giving workers more wages that will allow them to pour money into the economy”…this is insanity! Where do these additional wages come from? They come from the companies who employ them, thus making those companies less profitable and/or the products or services they produce less competitive in a global market. The unintended consequence will put many companies out of business, it will slow business start-ups and small business expansion (the backbone of new job growth) and ultimately result in job losses. So yeah, you may have workers with more money to spend, but you will have a whole lot fewer workers making money.
    -“40 leading economists have gone on record as stating that EFCA will ultimately be good for the economy”…Sure. And give me about 10 minutes and I could probably find another “40 leading economists” tell you that this will be bad for the economy. I wouldn’t rely on the theory and models espoused by leading economists. Rather, I would listen to business owners and managers. Overwhelmingly, they will tell you that this legislation will hurt their business. The operating costs will increase, they will hire fewer workers, and they will be even more motivated to move jobs offshore.
    -“For business to succeed, we need a strong middle class where workers are earning wages to support their families and buy goods and services…” I agree with that statement. I also believe we already have a strong middle class. Look at what’s happened to our standard of living in the US over the last several decades. It continues to improve. Is the average middle-class worker living better today than he/she would have been living a couple of decades ago? I believe the facts would suggest they are. I accept that the gap has widened between the top earners and the average earners over the years, but we must recognize that the bar continues to rise for the average – that’s goodness.
    -“Workers are far more likely to be intimidated by their boss than they are by their coworkers”…That’s an interesting point-of-view. Ask yourself how many times you’ve read about an employee being physically attacked by their boss. Compare that against the many well-documented union practices to intimidate “coworkers/union members” who don’t support a strike, who resist a union organization effort and/or side against the union leadership on important issues. There are in fact examples of worker abuses and intimidation by ownership/management, but for every one of those I bet you will find 10 examples of union intimidation of their coworkers.

    Again, I am strongly opposed to the EFCA legislation. I believe it will further tip the scale in favor of the worker over the employer in an environment where the employer is already at a disadvantage.

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